Apogee Minerals Ltd.
TSX VENTURE : APE

Apogee Minerals Ltd.

January 12, 2006 10:06 ET

Apogee Intersects Encouraging Silver-Zinc and Gold Mineralization at La Solucion Mine

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2006) -

Drilling Begins at Mikaya Prospect 5km Along Strike

Apogee Minerals Ltd. (TSX VENTURE:APE) has received encouraging silver-zinc-lead mineralization and indications of gold anomalism in four diamond drill holes at its La Solucion Mine Project in northwest Bolivia. A diamond drilling and channel sampling program has also commenced at the Mikaya Prospect 5 km northwest of the mine along the Hampaturi Vein.

Apogee Vice President-Exploration Doug Currie, who visited the project area and examined the drill core in December, commented: "The presence of the mineralized structure in all holes and the intersection of significant silver-zinc-lead mineralization and detection of very anomalous gold values at Hampaturi is very encouraging at this early stage of the program to evaluate the large mineralized system".

Highlights of mineralized drill hole intersections on the Hampaturi Vein at La Solucion include:

- SH01 1m @ 3.61% Zinc, 0.12% Lead, 16g/t Silver, less than 0.05g/t Gold

- SH02 1m @ 2.02% Zinc, 0.22% Lead, 23 g/t Silver, 0.07g/t Gold

- SH03 5m @ 4.68% Zinc, 3.10% Lead, 80 g/t Silver, 0.43 g/t Gold including 1m @ 7.23% Zinc, 8.17% Lead, 166 g/t Silver

- SH04 8m @ 1.86% Zinc, 1.59% Lead, 46g/t Silver including 4m @ 1.45% Zinc, 1.68% Lead, 54g/t Silver and 1.13g/t Gold

The La Solucion Project hosts a system of northeasterly trending veins, some of which can be traced for over 10km along strike. Within these veins there are high grade shoots of silver-zinc-lead which have been historically exploited by small scale modern mining. The La Solucion Mine, which currently mines and processes approximately 120 tonnes per day to produce silver-zinc-lead concentrates, has mined over 500,000 tonnes of ore over the past 13 years from the Hampaturi Vein.

Apogee has completed 7 holes totalling 1472.3m of its Phase 1 drilling program announced August 16, 2004, which focus on defining high grade silver-zinc-lead mineralization beneath and along strike from current and historical production zones within the extensive system of mineralized veins on the La Solucion Project area (Figure 1). Three holes (783.0 m), SC-01 to SC-03, have been drilled to test the Machuca Vein and four holes (689.3 m), SH-01 to SH-04, have tested the southwestern extension of the Hampaturi Vein.

Encouraging silver-zinc-lead mineralization was intersected in all four holes drilled on the southwestern extension of the Hampaturi Vein, up to 100m below and approximately 200m to the southwest of historical mining areas within the La Solucion Mine (Figure 2, Table 1). The mineralized zone in hole SH-04, the best intersection, is variably comprised of quartz vein stockwork, sphalerite-galena-chalcopyrite-pyrite rich breccia, pyritic quartz vein and sulphide-poor quartz stockwork.

Although regionally there are known gold prospects, gold had not been previously noted as significant within the La Solucion Project area; no significant gold has been reported within concentrates produced by the La Solucion Mine. The detection of up to 2.14g/t gold in SH-04 is considered very significant; analysis of drill samples not analyzed for gold is in progress.

The results from the 4 holes completed on the Hampaturi vein adds substance to the understanding of the vein system gained through mapping of over 2.6 kilometres of accessible underground workings at the mine. VP Operations and COO Rick Irvine states "These new results confirm that what we see underground has continuity not only along strike but at depth. Thus far, the nature of the deposit appears to lend itself positively toward our objectives for the application of modern mechanized mining methods and a significant increase over present day production levels."

Underground development has commenced within the mine to establish drill bays to allow drilling beneath the area currently being mined on the -45m Level of the mine. A planned program of approximately 3500m of underground diamond drilling is expected to commence mid-late February.

The Mikaya Prospect is a significant outcropping of the Hampaturi Vein structure 5 km northwest of the La Solucion Mine portal. Following a surface channel sampling program which confirmed historical reconnaissance sample results, a three hole diamond drilling program has commenced. Further geological mapping and more rigorous surface trench sampling is also being carried out simultaneously. The objective at Mikaya is to identify an extension of the silver-zinc mineralization being mined at the main portal.

Drill holes SC-01 to SC-03 testing the Machuca Vein intersected the vein structure but were not significantly visually mineralized; drill core sampling has commenced but is incomplete at this date. Geological mapping and surface and underground sampling of accessible historical workings, limited by ground collapse, will be completed to fully explain the results of the drilling, prior to any further drilling in this zone.

Mr. Douglas A. Currie, Vice President-Exploration, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and responsible for reviewing the technical disclosure in this press release.

All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada. A suite of 30 elements was analyzed using aquaregia digest and ICPAES analysis (ALS Analytical Code ME-MS41). Any samples exceeding threshold limits were re-analyzed using the most appropriate technique: silver, zinc and lead - aqua regia digestion, AAS finish (ALS Analytical Code AA46), gold - 30g fire assay with AAS finish (ALS Analytical Code AA25). ALS Chemex is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes. The company has initiated a QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks.

Building the World's Premier Emerging Silver Producer

Apogee Minerals Ltd. is a Canadian exploration and development company listed on the TSX Venture Exchange under the symbol APE. The company is focused on advanced Silver-Zinc projects in South America that demonstrate the potential to receive capital investment and be rapidly developed to production. Currently all of its projects are located in the historic silver producing regions of central and southwest Bolivia.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com/ir/apogee. Alternatively, investors are asked to email all questions and correspondence to APE@agoracom.com where they can also request addition to the Apogee Minerals investor email list to receive all future press releases and updates directly.



Table 1
Mineralized Drill Intersections

Phase 1 Drill Program
Hampaturi
La Solucion Project

---------------------------------------------------------------------
From To Width % Zn % Pb g/t Ag g/t Au
---------------------------------------------------------------------

---------------------------------------------------------------------
SH-01
---------------------------------------------------------------------
less less
than than
95 96 1 0.72 0.01 2 0.05
---------------------------------------------------------------------
less
than
96 97 1 3.61 0.12 16 0.05
---------------------------------------------------------------------
less less
than than
97 98 1 0.25 0.01 2 0.05
---------------------------------------------------------------------
less
than
98 99 1 0.07 0.10 33 0.05
---------------------------------------------------------------------

---------------------------------------------------------------------
SH-02
---------------------------------------------------------------------
less
than
102 103 1 0.01 0.58 83 0.05
---------------------------------------------------------------------
103 104 1 2.02 0.22 23 0.07
---------------------------------------------------------------------
104 105 1 0.02 0.39 37 0.19
---------------------------------------------------------------------

---------------------------------------------------------------------
SH-03
---------------------------------------------------------------------
115 116 1 4.14 2.35 72 0.45
---------------------------------------------------------------------
116 117 1 4.63 2.17 59 0.45
---------------------------------------------------------------------
117 118 1 4.98 2.47 67 0.27
---------------------------------------------------------------------
118 119 1 7.23 8.17 166 0.89
---------------------------------------------------------------------
119 120 1 2.40 0.35 37 0.07
---------------------------------------------------------------------

---------------------------------------------------------------------
SH-04
---------------------------------------------------------------------
124 125 1 1.57 0.07 3 NA
---------------------------------------------------------------------
125 126 1 1.83 0.20 7 NA
---------------------------------------------------------------------
126 127 1 1.58 1.98 51 0.29
---------------------------------------------------------------------
127 128 1 0.74 3.79 89 0.10
---------------------------------------------------------------------
128 129 1 2.65 2.90 90 0.87
---------------------------------------------------------------------
129 130 1 2.69 1.53 40 0.41
---------------------------------------------------------------------
130 131 1 3.36 2.06 63 1.09
---------------------------------------------------------------------
131 132 1 0.46 0.23 22 2.14
---------------------------------------------------------------------
less less
than than
132 133 1 0.01 0.01 4 0.10
---------------------------------------------------------------------

---------------------------------------------------------------------
NA - not analyzed
---------- ----------

---------------------------------------------------------------------


NOTE: There are maps available on CCNMatthews' website at:

http://www.ccnmatthews.com/docs/ape0112a.doc

http://www.ccnmatthews.com/docs/ape0112b.jpg

Contact Information

  • Apogee Minerals Ltd.
    John Carlesso
    President and C.E.O.
    (416) 861-5881